If your investor wants to share in the risk/reward of the deal with profit participation, most agree it's fair if he gets 50% of profits if he funds the entire deal.

I would be very grateful for any input and any referrals to a law practice that may be able to fully address this question.Also if the same LLC being paid for the liaison services was also participating in the lending pool..how would this affect anything ?

So for those of you reading and not participating here is the mistake I made I encourage you not to...Mistake #1I assumed that my bank offered FHA loans so I went online and filled out the application to see what I could be approved for and after they put a hard credit inquiry on my credit report I found out they don't offer FHA loans.Can only assume I will make many more mistakes along the way, thank god for BiggerPockets to help reduce them!

It is ironic, my classes now seems so much more difficult because I have lost my motivation to participate and learn.

I though maybe an Equity Participation offer might work.

The community seems quite vibrant and active, and I am looking forward to participating.

It's great to see that you're making the jump from lurker to active participator in the forums.

Make sure that the bank is participating in Texas Equity ( a ) ( 6 ) and go from there.If you want cash out the other option is to get a HML ( Hard Money Loan ) and then turn around the day after and do a conventional loan Rate & Term. 

If you wish to have participation in the profit on top of that I suggest you consult with experienced professional as to avoid the UBIT.

Feel free to ask, answer, you know, just participate and be surrounded by like minded people.See you around!